What is a financial reference?

The financial reference is someone who can confirm your financial statements and whatever you have represented to the board. So yes, it is exactly what they said, your accountant or banker. If you don't have a banker who you work with, you should check in with your home branch where you have your accounts and find out who they suggest to list. I'm sure they get this question all the time.

Since I don't know what building you're gunning for, this is a little hard to do, but roughly, "I have had the privilege of serving as tbontb's accountant for XX years, and I have during that time found him/her to be of upstanding financial character. Currently, he/she has assets of XX, which include a long-standing relation with XX bank, and no meaningful debts except for education debt of XX used to procure his/her master's degree from XX university.."

Obviously you customize the language to your specific financial profile.

does that help?

ali r.
DG Neary Realty

So those of us who are smart and savvy enough to do our own taxes, do all our banking online, maintain our own spreadsheets tracking assets, liabilities, net worth, and are smart enough not to shell out money every year to some schmuck who probably got lower SAT math scores than we did?

then you use your branch banker as a reference, W34, because no matter how good your math SATs were (I'm still mad about those last twenty points) I bet you don't have all your money under your mattress.

ali r.

Thank you all... great inputs! I know what to do now.

I can't speak for West34, but I do my own taxes and have no bank branch. Literally ALL of my banking is done online, entirely via self-managed accounts, and I've done things this way for close to 10 years. I use ING Direct (virtual) for checking and don't even have a paper checkbook, though I do have a brokerage account with checkwriting privileges should I need to pay something by check in an emergency. I think the last time I wrote a paper check was 2007 (and before that, 2003), and the last time I was inside a bank branch was 2004.

Would I write a letter explaining my situation and attach the spreadsheets I use to track everything on a monthly basis? I know I'm a bit unusual, but not that "out there" for Gen Y.

All you have to do is go to your bank and they can write something up for you, stating how long you had been a customer (good customer), what your average balances are on your accounts, etc. It's really simple and it's free.

"Would I write a letter explaining my situation and attach the spreadsheets I use to track everything on a monthly basis? I know I'm a bit unusual, but not that "out there" for Gen Y."

No.

If a board is asking for a "financial reference", they're looking for a third party to verify what you're telling them. You can't be your own reference.

So would I then go to an accountant with my spreadsheets, tax returns, and credit report and ask him to write a letter attesting to the veracity of it? (Basically, ask him to "audit me" for the board?)

Yes.

Speaking as a board member, I want a third party verifying that what you're telling me is true. Anyone can create anything on a spreadsheet.

lad - your bank can verify your accounts even if you do all your banking online. With most banks, you will find the name of your rep somewhere on the first screen when you log on. Shockingly, bank reps have computers too (sorry a little Gen X humour...) In terms of taxes, the IRS can provide a form confirming that you submitted your returns